eOne Rejects ITV’s $1.3 Billion Offer

LONDON: Entertainment One (eOne) has rejected a proposal from ITV to combine the two companies.

ITV bid 236 pence per eOne share in cash, valuing the company at around £1 billion ($1.3 billion). ITV said the proposal “represents a significant premium over the undisturbed eOne share price, prior to the impact of recent bid speculation.”

“ITV has a clear strategy that, over recent years, has created significant value for shareholders,” the company said in a statement. “A key part of that strategy is continuing to build a scaled international content and global distribution business, with a focus on U.S. scripted content. ITV believes that the proposed combination with eOne has strong strategic rationale and would further accelerate ITV’s rebalancing of the business.”

The board of eOne voted unanimously to reject the offer, saying that it “fundamentally undervalues the company and its prospects.”